Child Tax Credit: $8,000 credit available to families in your tax refund

Millions of families could see up to $8,000 in the form of a child tax credit for their child if they claim it in time.

Under the American Rescue Act, a provision was added that would expand tax credits that pertained to children and dependents for the 2021 tax year.

In 2021, families saw up to $300 per month from July until December as an advance on their tax credit for 2022.

In addition to this, the child and dependent care credit is available as well.

Application deadline for $7,200 in Child Tax Credit is approaching soon

What’s the child and dependent care credit if it isn’t the child tax credit?

This credit was made for families currently working or attending school.

The credit helps cover the cost of raising a child while working.

This credit is also for dependents with disabilities who may be past the age of 13.

SSI: Could SSI payments replace child tax credit payments?

The most you could claim before this year was $6,000 for two kids.

In 2022 you can claim up to $8,000 for one child or $16,000 for two or more.

Before, the maximum percentage of qualifying expenses you could claim was 35% but now it’s 50%.

Eligibility for this specific child tax credit

An AGI of $125,000 or less is needed.

Before, it was only $15,000.

Anyone with more than $125,000 will see the 50% credit lower as income rises.

It’s only 20% for those with an income between $183,000 and $400,000.

If you make over $438,000 you are ineligible.

54% of households in the country make below $75,000.

This credit is available for children 13 and under or disabled dependents.

Expenses that can be covered include transportation, babysitting, before or after school programs, daycamps, and daycare.